Centre for Strategic Manufacturing DMEM Web enabled Performance Measurement System (WePMS): Management Implications Sai S Nudurupati Supervisor: Dr. Umit S Bititci 24 January 2002

Centre for Strategic Manufacturing DMEM Problem area There are lot of Frameworks and Models on Performance Measurement Systems (PMS). Most of these frameworks does not have an IT platform. Recently several software platforms to support PMS started to emerge. Also recently we are seeing companies starting to adopt IT platforms to support PMS. Some companies even started to use web to share their performance information to make it more visible.

Centre for Strategic Manufacturing DMEM Problem area (continued..) Eventhough some companies are successful, most of them are unsuccessful because….. ….. the social, management and business implications on IT / Web enabled PMS is not yet fully understood, because there has not been enough research focused on it.

Centre for Strategic Manufacturing DMEM The Aim of the Overall Research “To test the acceptability and usefulness of Web enabled Performance Measurement System (WePMS) and identify the management implications of it.”

Centre for Strategic Manufacturing DMEM Specific Objectives Develop a complete understanding of the dynamics of PMS and assess the limitations of knowledge in this field. Develop and design such a dynamic system (WePMS) using available technologies Implement WePMS in four different collaborating companies using available IT technologies. Assess the impact of WePMS, resulting in Management implications Learn and disseminate the findings of the research within the academic and industrial community.

Centre for Strategic Manufacturing DMEM Research Methodology Framework & Architecture Literature Review Implementation in 4 companies Monitoring the use of WePMS Dissemination & Exploitation Data Collection & Cross Case Analysis Hypothesis Framework 1 23 Academic Benefits Industrial Benefits

Centre for Strategic Manufacturing DMEM Literature Review Performance Measurement Literature –Frameworks and Models –Different approaches in which, IT can be supported to the above models –IT platforms available in the market Change Management Literature –People Factors (in the context of Technology) Pilot Case Study Extended review on commercial software available in the market 1 23

Centre for Strategic Manufacturing DMEM Results of Pilot Case Study with Alcan Complete transparency of information Dissemination of knowledge More confident and proactive management style. Provoke team behaviour Resistance from some people as they are pulled into light People with lack-of-time to do things 1 23

Centre for Strategic Manufacturing DMEM What made us use this approach in Alcan when there are several software for PM are available in the market? 1 23

Centre for Strategic Manufacturing DMEM A detailed and structured review was undertaken on the following software products (vendors are shown below) Cognos Ltd. CorVu Plc. PB Views Ltd. Lucidus IPM. ProMeaSys. Hyperion Solutions Inphase Software Gentia Software QPR Software SAS Institute. Active Strategy Comshare Software QuantiSoft Pilot Software Ltd. Oracle Corporation SAP PeopleSoft 1 23

Centre for Strategic Manufacturing DMEM Key findings of software review The cost of all the software products are extremely high ranging from £ 30k + Development + Consulting + Training costs. Even though most of the software adopt different frameworks, they are build based on Balanced Scorecard. Most of the software are not good at controlling processes using statistical approach, which is extremely required for manufacturing organisations. 1 23

Centre for Strategic Manufacturing DMEM From the case experience and the review (Literature), Web enabled Performance Measurement System (WePMS) is developed Using HTML Java Script NWA Quality Analyst Web Server MS Excel A Demo Version is available at Designing WePMS

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Centre for Strategic Manufacturing DMEM Hypothesis Framework WePMS Technical. Technology People Management Implications Business Results Customer. Results People Results Financial Results 1 23

Centre for Strategic Manufacturing DMEM Conclusions Even though most of the Management Implications and factors which effect them are anticipated, some other implications and their factors will result in action.

Centre for Strategic Manufacturing DMEM Future Work Implementation in 4 companies Monitoring the use of WePMS Dissemination & Exploitation Data Collection & Cross Case Analysis Framework & Architecture Literature Review Hypothesis Framework